Recently I posted a blog on The Financial Woman about the performance of mid cap growth stock funds. After the fact I thought maybe I should explain just what category mid cap growth funds represent. On The Financial Woman blog I do my best to avoid unexplained jargon so here goes.
Today I will write about the mid cap category and explain the growth category in my next blog. Funds are divided into three major groups when referring to the size of the company in which they invest: small cap mid cap and large cap. There are further smaller groups such as micro cap but these are the three major categories based on company size.
Capitalization abbreviated as “cap” is the term that is used to define a company’s size. Mid caps represent the group of companies whose size or capitalization is generally between $750 million to $3 billion. Some firms may use a slightly different number to represent their fund investments but it is safe to say that the mid cap funds are the companies that are too large to be considered small cap and too small to be considered large cap. Think of small medium and large and there you have it.